How can I get the best rate for my business loan?

Prestaflex's aim is to offer its customers the best possible rate by providing them with a personalized, customized credit offer. To achieve this, a complete evaluation is carried out using five key criteria: Liquidity, Solvency, Honorability, Stability, Reputation.

liquidity (Financial capacity)

Objective:

To analyze the customer's financial capacity to generate sufficient income to repay the requested credit regularly and without difficulty. This assessment makes it possible to estimate whether the customer has sufficient disposable income to meet the loan repayments.

Sub-criteria :

  • Fixed income : Regular salary, pension, disability or retirement income.
  • Current expenses: Rent, outstanding loans, compulsory insurance, living expenses, taxes.
  • Bonuses: exceptional or variable income such as annual bonuses, commissions, special gratuities.
  • Rental income: Income from rental properties, secondary properties.
  • Savings and financial assets: Savings accounts, investments in shares, bonds, etc.

Impact on valuation:

High liquidity is a positive indicator, reducing the risk of non-repayment and enabling a better interest rate. A detailed assessment of financial capacity is essential to determine the optimum credit amount.

📈 Solvency (Payment reliability)

Objective:

To check whether the customer presents a reliable financial profile, by ascertaining his ability to honor his financial commitments on a regular basis. Solvency analysis is used to assess the risk of payment default.

Sub-criteria :

  • Legal proceedings: Verification of the existence of current or previous proceedings for unpaid debts.
  • Late payments: Analysis of the history of missed or delayed payments.
  • Payment orders: Consultation of open files revealing problematic financial situations.
  • Payment behavior: Punctuality of payments on loans, rents, subscriptions, etc.
  • Outstanding loans: Assessment of overall indebtedness and its compatibility with a new loan application.

Impact on assessment:

Solid solvency reassures the bank and enables it to offer attractive interest rates to the most reliable customers. Poor creditworthiness can lead to an increase in the interest rate or refusal of credit.

✅ Honorability (Financial history)

Objective:

To assess whether the customer has honored his or her financial commitments in the past in an exemplary manner. This history is a key indicator of the likelihood of reliable repayment in the future.

Sub-criteria:

  • ZEK/IKO history: Verification of information contained in Swiss credit databases (credit applications, major incidents, etc.).
  • Compliance with past commitments: Regular payment of debts, absence of serious financial incidents.
  • Absence of serious incidents: No notable payment defaults on previous credits.
  • Reputation with creditors: Positive or negative feedback from other financial institutions.

Impact on valuation:

A good track record with financial institutions enables access to more favorable credit terms and lower interest rates.

stability (Personal and professional situation)

Objective:

To measure the customer's personal and professional stability, in order to guarantee a lasting financial commitment. Stability is an essential factor in assessing the customer's ability to meet commitments over the long term.

Sub-criteria :

  • Marital status: Married, single, divorced - indicative of personal stability.
  • Age: Assessment of financial maturity and remaining working life.
  • Length of employment: Length of time with current company, proven professional stability.
  • Residential stability: Time spent at same address, geographical stability.
  • Type of employment: Permanent, fixed-term contract, self-employed, liberal professions.
  • Type of residence permit : Status of non-Swiss residents, which may influence their stability in the territory.

Impact on evaluation:

Lasting stability is a major asset in obtaining a competitive interest rate. Unstable personal or professional situations can be perceived as an additional risk.

🌟 Reputation (Social image and behavior)

Objective:

Examine the customer's overall reputation through public presence, social interactions and lifestyle. The image projected may influence the assessment of the risk profile.

Sub-criteria :

  • Media presence: Published articles, positive or negative mentions in traditional or online media.
  • Behavior on social networks: Digital traces left by the customer, indications of responsible or problematic behavior.
  • Lifestyle: Consumption habits; spendthrift or discreet profile, indicators of responsible management.
  • Third-party reputation: Testimonials or opinions from other financial organizations.

Impact on valuation:

A positive reputation can facilitate access to preferential rates. Conversely, a poor reputation can be an obstacle to acceptance or lead to a higher rate.

Important points to remember when applying for a business loan

In-depth analysis of these criteria enables Prestaflex to offer the best possible credit terms, based on a rigorous, personalized assessment of each application. An overall view of the customer's financial, personal, professional and social situation guarantees a fair, balanced approach tailored to each profile.

An article by Munur Aslan, Director of PrestaFlex

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